House File 215 H-1014 Amend House File 215 as follows: 1 1. Page 1, before line 1 by inserting: 2 < DIVISION ___ 3 STATE SCHOOL FOUNDATION PROGRAM 4 Section 1. Section 257.2, subsection 9, Code 2013, 5 is amended by adding the following new paragraph: 6 NEW PARAGRAPH . d. Property tax replacement 7 payments received under section 257.16B. 8 Sec. ___. Section 257.4, subsection 1, paragraph 9 a, Code 2013, is amended by adding the following new 10 subparagraph: 11 NEW SUBPARAGRAPH . (9) The amount of the school 12 district property tax replacement payment received by 13 the school district under section 257.16B. 14 Sec. ___. Section 257.4, subsection 1, paragraph b, 15 Code 2013, is amended to read as follows: 16 b. For the budget year beginning July 1, 2008, and 17 succeeding budget years, the department of management 18 shall annually determine an adjusted additional 19 property tax levy and a statewide maximum adjusted 20 additional property tax levy rate, not to exceed the 21 statewide average additional property tax levy rate, 22 calculated by dividing the total adjusted additional 23 property tax levy dollars statewide by the statewide 24 total net taxable valuation. For purposes of this 25 paragraph, the adjusted additional property tax levy 26 shall be that portion of the additional property 27 tax levy corresponding to the state cost per pupil 28 multiplied by a school district’s weighted enrollment, 29 and then multiplied by one hundred percent less the 30 regular program foundation base per pupil percentage 31 pursuant to section 257.1 , and then reduced by the 32 amount of property tax replacement received under 33 section 257.16B . The district shall receive adjusted 34 additional property tax levy aid in an amount equal 35 to the difference between the adjusted additional 36 property tax levy rate and the statewide maximum 37 adjusted additional property tax levy rate, as applied 38 per thousand dollars of assessed valuation on all 39 taxable property in the district. The statewide 40 maximum adjusted additional property tax levy rate 41 shall be annually determined by the department 42 taking into account amounts allocated pursuant to 43 section 257.15, subsection 4 . The statewide maximum 44 adjusted additional property tax levy rate shall be 45 annually determined by the department taking into 46 account amounts allocated pursuant to section 257.15, 47 subsection 4 , and the balance of the property tax 48 equity and relief fund created in section 257.16A at 49 the end of the calendar year. 50 -1- HF215.289 (3) 85 md/sc 1/ 18 #1.

Sec. ___. Section 257.8, subsections 1 and 2, Code 1 2013, are amended to read as follows: 2 1. State percent of growth. The state percent of 3 growth for the budget year beginning July 1, 2010, is 4 two percent. The state percent of growth for the 5 budget year beginning July 1, 2012, is two percent. 6 The state percent of growth for the budget year 7 beginning July 1, 2013, is two percent. The state 8 percent of growth for the budget year beginning July 9 1, 2014, is two percent. The state percent of growth 10 for each subsequent budget year shall be established 11 by statute which shall be enacted within thirty days 12 of the submission in the year preceding the base year 13 of the governor’s budget under section 8.21 . The 14 establishment of the state percent of growth for a 15 budget year shall be the only subject matter of the 16 bill which enacts the state percent of growth for a 17 budget year. 18 2. Categorical state percent of growth. The 19 categorical state percent of growth for the budget 20 year beginning July 1, 2010, is two percent. The 21 categorical state percent of growth for the budget 22 year beginning July 1, 2012, is two percent. The 23 categorical state percent of growth for the budget 24 year beginning July 1, 2013, is two percent. The 25 categorical state percent of growth for the budget 26 year beginning July 1, 2014, is two percent. The 27 categorical state percent of growth for each budget 28 year shall be established by statute which shall 29 be enacted within thirty days of the submission in 30 the year preceding the base year of the governor’s 31 budget under section 8.21 . The establishment of the 32 categorical state percent of growth for a budget year 33 shall be the only subject matter of the bill which 34 enacts the categorical state percent of growth for a 35 budget year. The categorical state percent of growth 36 may include state percents of growth for the teacher 37 salary supplement, the professional development 38 supplement, and the early intervention supplement. 39 Sec. ___. Section 257.15, subsection 4, paragraph 40 b, Code 2013, is amended to read as follows: 41 b. After lowering all school district adjusted 42 additional property tax levy rates to the statewide 43 maximum adjusted additional property tax levy rate 44 under paragraph “a” , the department of management shall 45 use any remaining funds at the end of the calendar 46 year to further lower additional property taxes by 47 increasing for the budget year beginning the following 48 July 1, the state foundation base percentage. Moneys 49 used pursuant to this paragraph shall supplant an equal 50 -2- HF215.289 (3) 85 md/sc 2/ 18

amount of the appropriation made from the general fund 1 of the state pursuant to section 257.16 that represents 2 the increase in state foundation aid. 3 Sec. ___. NEW SECTION . 257.16B School district 4 property tax replacement payments. 5 1. For each fiscal year beginning on or after July 6 1, 2013, there is appropriated from the general fund 7 of the state to the department of education an amount 8 necessary to make all school district property tax 9 replacement payments under this section, as calculated 10 in subsection 2, paragraph “c” . 11 2. For each budget year beginning on or after July 12 1, 2013, the department of management shall calculate 13 for each school district all of the following: 14 a. The state cost per pupil for the budget year 15 beginning July 1, 2012, multiplied by one hundred 16 percent less the regular program foundation base per 17 pupil percentage pursuant to section 257.1. 18 b. The state cost per pupil for the budget year 19 multiplied by one hundred percent less the regular 20 program foundation base per pupil percentage pursuant 21 to section 257.1. 22 c. The amount of each school district’s property 23 tax replacement payment. Each school district’s 24 property tax replacement payment equals the school 25 district’s weighted enrollment for the budget year 26 multiplied by the remainder of the amount calculated 27 for the school district under paragraph “b” minus 28 the amount calculated for the school district under 29 paragraph “a” . 30 3. School district property tax replacement 31 payments under this section shall be paid by the 32 department of education at the same time and in the 33 same manner as foundation aid is paid and may be 34 included in the monthly payment of state aid under 35 section 257.16, subsection 2. 36 Sec. ___. CODE SECTION 257.8 —— 37 IMPLEMENTATION. The requirements of section 257.8, 38 subsections 1 and 2, regarding the enactment of bills 39 establishing the regular program state percent of 40 growth and the categorical state percent of growth 41 within thirty days of the submission in the year 42 preceding the base year of the governor’s budget and 43 regarding the subject matter limitation of such bills 44 do not apply to this division of this Act. 45 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 46 of this Act, being deemed of immediate importance, 47 takes effect upon enactment. 48 DIVISION ___ 49 SCHOOL DISTRICT FUNDING TERMINOLOGY 50 -3- HF215.289 (3) 85 md/sc 3/ 18

Sec. ___. Section 256C.4, subsection 1, paragraph 1 f, Code 2013, is amended to read as follows: 2 f. The receipt of funding by a school district 3 for the purposes of this chapter , the need for 4 additional funding for the purposes of this chapter , 5 or the enrollment count of eligible students under 6 this chapter shall not be considered to be unusual 7 circumstances, create an unusual need for additional 8 funds, or qualify under any other circumstances that 9 may be used by the school budget review committee 10 to grant supplemental aid to or establish modified 11 allowable growth supplemental state aid for a school 12 district under section 257.31 . 13 Sec. ___. Section 257.2, subsection 1, Code 2013, 14 is amended by striking the subsection. 15 Sec. ___. Section 257.2, subsection 12, Code 2013, 16 is amended to read as follows: 17 12. “State percent of growth” means the percent 18 of growth which is established by statute pursuant to 19 section 257.8 , and which is used in determining the 20 allowable growth supplemental state aid . 21 Sec. ___. Section 257.2, Code 2013, is amended by 22 adding the following new subsection: 23 NEW SUBSECTION . 12A. “Supplemental state aid” means 24 the amount by which state cost per pupil and district 25 cost per pupil will increase from one budget year to 26 the next. 27 Sec. ___. Section 257.6, subsection 1, paragraph 28 a, subparagraph (5), Code 2013, is amended to read as 29 follows: 30 (5) Resident pupils receiving competent private 31 instruction from a licensed practitioner provided 32 through a public school district pursuant to chapter 33 299A shall be counted as three-tenths of one pupil. 34 Revenues received by a school district attributed to 35 a school district’s weighted enrollment pursuant to 36 this subparagraph shall be expended for the purpose 37 for which the weighting was assigned under this 38 subparagraph. If the school district determines that 39 the expenditures associated with providing competent 40 private instruction pursuant to chapter 299A are 41 in excess of the revenue attributed to the school 42 district’s weighted enrollment for such instruction in 43 accordance with this subparagraph, the school district 44 may submit a request to the school budget review 45 committee for modified allowable growth supplemental 46 state aid in accordance with section 257.31, subsection 47 5 , paragraph “n” . A home school assistance program 48 shall not provide moneys received pursuant to this 49 subparagraph, nor resources paid for with moneys 50 -4- HF215.289 (3) 85 md/sc 4/ 18

received pursuant to this subparagraph, to parents or 1 students utilizing the program. Moneys received by a 2 school district pursuant to this subparagraph shall be 3 used as provided in section 299A.12 . 4 Sec. ___. Section 257.8, subsections 3, 6, and 7, 5 Code 2013, are amended to read as follows: 6 3. Allowable growth Supplemental state aid 7 calculation. The department of management shall 8 calculate the regular program allowable growth 9 supplemental state aid for a budget year by multiplying 10 the state percent of growth for the budget year by 11 the regular program state cost per pupil for the base 12 year and shall calculate the special education support 13 services allowable growth supplemental state aid for 14 the budget year by multiplying the state percent of 15 growth for the budget year by the special education 16 support services state cost per pupil for the base 17 year. 18 6. Combined allowable growth supplemental state 19 aid . The combined allowable growth supplemental state 20 aid per pupil for each school district is the sum of 21 the regular program allowable growth supplemental 22 state aid per pupil and the special education support 23 services allowable growth supplemental state aid per 24 pupil for the budget year, which may be modified as 25 follows: 26 a. By the school budget review committee under 27 section 257.31 . 28 b. By the department of management under section 29 257.36 . 30 7. Alternate allowable growth supplemental state 31 aid —— definitions. For budget years beginning July 32 1, 2000, and subsequent budget years, references 33 to the terms “allowable growth” “supplemental state 34 aid” , “regular program state cost per pupil” , and 35 “regular program district cost per pupil” shall 36 mean those terms as calculated for those school 37 districts that calculated regular program allowable 38 growth supplemental state aid for the school budget 39 year beginning July 1, 1999, with the additional 40 thirty-eight dollars specified in section 257.8, 41 subsection 4, Code 2013 . 42 Sec. ___. Section 257.8, subsections 4 and 5, Code 43 2013, are amended by striking the subsections. 44 Sec. ___. Section 257.9, subsection 1, paragraph b, 45 Code 2013, is amended to read as follows: 46 b. The total calculated under this subsection shall 47 be divided by the total of the budget enrollments of 48 all school districts for the budget year beginning July 49 1, 1990, calculated under section 257.6, subsection 50 -5- HF215.289 (3) 85 md/sc 5/ 18

4 , if section 257.6, subsection 4 , had been in effect 1 for that budget year. The regular program state 2 cost per pupil for the budget year beginning July 1, 3 1991, is the amount calculated by the department of 4 management under this subsection plus an allowable 5 growth a supplemental state aid amount , as defined in 6 this division of this Act, that is equal to the state 7 percent of growth for the budget year multiplied by the 8 amount calculated by the department of management under 9 this subsection . 10 Sec. ___. Section 257.9, subsections 2, 4, 6, 7, 8, 11 9, and 10, Code 2013, are amended to read as follows: 12 2. Regular program state cost per pupil for 13 1992-1993 and succeeding years. For the budget year 14 beginning July 1, 1992, and succeeding budget years, 15 the regular program state cost per pupil for a budget 16 year is the regular program state cost per pupil for 17 the base year plus the regular program allowable growth 18 supplemental state aid for the budget year. 19 4. Special education support services state cost 20 per pupil for 1992-1993 and succeeding years. For the 21 budget year beginning July 1, 1992, and succeeding 22 budget years, the special education support services 23 state cost per pupil for the budget year is the special 24 education support services state cost per pupil for the 25 base year plus the special education support services 26 allowable growth supplemental state aid for the budget 27 year. 28 6. Teacher salary supplement state cost per 29 pupil. For the budget year beginning July 1, 2009, for 30 the teacher salary supplement state cost per pupil, the 31 department of management shall add together the teacher 32 compensation allocation made to each district for the 33 fiscal year beginning July 1, 2008, pursuant to section 34 284.13, subsection 1, paragraph “h” , Code 2009 , and 35 the phase II allocation made to each district for the 36 fiscal year beginning July 1, 2008, pursuant to section 37 294A.9 , Code 2009, and divide that sum by the statewide 38 total budget enrollment for the fiscal year beginning 39 July 1, 2009. The teacher salary supplement state 40 cost per pupil for the budget year beginning July 1, 41 2010, and succeeding budget years, shall be the amount 42 calculated by the department of management under this 43 subsection for the base year plus an allowable growth 44 a supplemental state aid amount that is equal to the 45 teacher salary supplement categorical state percent of 46 growth, pursuant to section 257.8, subsection 2 , for 47 the budget year, multiplied by the amount calculated 48 by the department of management under this subsection 49 for the base year. 50 -6- HF215.289 (3) 85 md/sc 6/ 18

7. Professional development supplement state cost 1 per pupil. For the budget year beginning July 1, 2009, 2 for the professional development supplement state 3 cost per pupil, the department of management shall 4 add together the professional development allocation 5 made to each district for the fiscal year beginning 6 July 1, 2008, pursuant to section 284.13, subsection 7 1, paragraph “d” , Code 2009 , and divide that sum 8 by the statewide total budget enrollment for the 9 fiscal year beginning July 1, 2009. The professional 10 development supplement state cost per pupil for the 11 budget year beginning July 1, 2010, and succeeding 12 budget years, shall be the amount calculated by the 13 department of management under this subsection for 14 the base year plus an allowable growth a supplemental 15 state aid amount that is equal to the professional 16 development supplement categorical state percent of 17 growth, pursuant to section 257.8, subsection 2 , for 18 the budget year, multiplied by the amount calculated 19 by the department of management under this subsection 20 for the base year. 21 8. Early intervention supplement state cost per 22 pupil. For the budget year beginning July 1, 2009, 23 for the early intervention supplement state cost per 24 pupil, the department of management shall add together 25 the early intervention allocation made to each district 26 for the fiscal year beginning July 1, 2008, pursuant 27 to section 256D.4, Code 2009, and divide that sum by 28 the statewide total budget enrollment for the fiscal 29 year beginning July 1, 2009. The early intervention 30 supplement state cost per pupil for the budget year 31 beginning July 1, 2010, and succeeding budget years, 32 shall be the amount calculated by the department of 33 management under this subsection for the base year plus 34 an allowable growth a supplemental state aid amount 35 that is equal to the early intervention supplement 36 categorical state percent of growth, pursuant to 37 section 257.8, subsection 2 , for the budget year, 38 multiplied by the amount calculated by the department 39 of management under this subsection for the base year. 40 9. Area education agency teacher salary supplement 41 state cost per pupil. For the budget year beginning 42 July 1, 2009, for the area education agency teacher 43 salary supplement state cost per pupil, the department 44 of management shall add together the teacher 45 compensation allocation made to each area education 46 agency for the fiscal year beginning July 1, 2008, 47 pursuant to section 284.13, subsection 1, paragraph 48 “i” , Code 2009 , and the phase II allocation made 49 to each area education agency for the fiscal year 50 -7- HF215.289 (3) 85 md/sc 7/ 18

beginning July 1, 2008, pursuant to section 294A.9 , 1 Code 2009, and divide that sum by the statewide special 2 education support services weighted enrollment for 3 the fiscal year beginning July 1, 2009. The area 4 education agency teacher salary supplement state 5 cost per pupil for the budget year beginning July 1, 6 2010, and succeeding budget years, shall be the amount 7 calculated by the department of management under this 8 subsection for the base year plus an allowable growth 9 a supplemental state aid amount that is equal to the 10 teacher salary supplement categorical state percent of 11 growth, pursuant to section 257.8, subsection 2 , for 12 the budget year, multiplied by the amount calculated 13 by the department of management under this subsection 14 for the base year. 15 10. Area education agency professional development 16 supplement state cost per pupil. For the budget year 17 beginning July 1, 2009, for the area education agency 18 professional development supplement state cost per 19 pupil, the department of management shall add together 20 the professional development allocation made to each 21 area education agency for the fiscal year beginning 22 July 1, 2008, pursuant to section 284.13, subsection 23 1, paragraph “d” , Code 2009 , and divide that sum by 24 the statewide special education support services 25 weighted enrollment for the fiscal year beginning 26 July 1, 2009. The area education agency professional 27 development supplement state cost per pupil for the 28 budget year beginning July 1, 2010, and succeeding 29 budget years, shall be the amount calculated by the 30 department of management under this subsection for 31 the base year plus an allowable growth a supplemental 32 state aid amount that is equal to the professional 33 development supplement categorical state percent of 34 growth, pursuant to section 257.8, subsection 2 , for 35 the budget year, multiplied by the amount calculated 36 by the department of management under this subsection 37 for the base year. 38 Sec. ___. Section 257.10, subsection 1, Code 2013, 39 is amended to read as follows: 40 1. Regular program district cost per pupil for 41 1991-1992. For the budget year beginning July 1, 1991, 42 in order to determine the regular program district 43 cost per pupil for a district, the department of 44 management shall divide the product of the regular 45 program district cost per pupil of the district for 46 the base year, as regular program district cost per 47 pupil would have been calculated under section 442.9 , 48 Code 1989, multiplied by its budget enrollment for 49 the base year as budget enrollment would have been 50 -8- HF215.289 (3) 85 md/sc 8/ 18

calculated under section 442.4 , Code 1989, plus the 1 amount added to district cost pursuant to section 2 442.21 , Code 1989, for each school district, by the 3 budget enrollment of the school district for the budget 4 year beginning July 1, 1990, calculated under section 5 257.6, subsection 4 , as if section 257.6, subsection 4 , 6 had been in effect for that budget year. The regular 7 program district cost per pupil for the budget year 8 beginning July 1, 1991, is the amount calculated by the 9 department of management under this subsection plus 10 the allowable growth supplemental state aid amount , 11 as defined in this division of this Act, calculated 12 for regular program state cost per pupil, except that 13 if the regular program district cost per pupil for 14 the budget year calculated under this subsection in 15 any school district exceeds one hundred ten percent 16 of the regular program state cost per pupil for the 17 budget year, the department of management shall reduce 18 the regular program district cost per pupil of that 19 district for the budget year to an amount equal to 20 one hundred ten percent of the regular program state 21 cost per pupil for the budget year, and if the regular 22 program district cost per pupil for the budget year 23 calculated under this subsection in any school district 24 is less than the regular program state cost per pupil 25 for the budget year, the department of management shall 26 increase the regular program district cost per pupil of 27 that district to an amount equal to the regular program 28 state cost per pupil for the budget year. 29 Sec. ___. Section 257.10, subsection 2, paragraph 30 a, Code 2013, is amended to read as follows: 31 a. For the budget year beginning July 1, 1992, and 32 succeeding budget years, the regular program district 33 cost per pupil for each school district for a budget 34 year is the regular program district cost per pupil for 35 the base year plus the regular program allowable growth 36 supplemental state aid for the budget year except as 37 otherwise provided in this subsection . 38 Sec. ___. Section 257.10, subsection 4, paragraph 39 a, Code 2013, is amended to read as follows: 40 a. For the budget year beginning July 1, 1992, and 41 succeeding budget years, the special education support 42 services district cost per pupil for the budget year is 43 the special education support services district cost 44 per pupil for the base year plus the special education 45 support services allowable growth supplemental state 46 aid for the budget year. 47 Sec. ___. Section 257.10, subsection 5, Code 2013, 48 is amended to read as follows: 49 5. Combined district cost per pupil. The combined 50 -9- HF215.289 (3) 85 md/sc 9/ 18

district cost per pupil for a school district is the 1 sum of the regular program district cost per pupil 2 and the special education support services district 3 cost per pupil. Combined district cost per pupil does 4 not include modified allowable growth supplemental 5 state aid added for school districts that have a 6 negative balance of funds raised for special education 7 instruction programs, modified allowable growth 8 supplemental state aid granted by the school budget 9 review committee for a single school year, or modified 10 allowable growth supplemental state aid added for 11 programs for dropout prevention. 12 Sec. ___. Section 257.10, subsection 9, paragraph 13 a, Code 2013, is amended to read as follows: 14 a. For the budget year beginning July 1, 2009, 15 the department of management shall add together the 16 teacher compensation allocation made to each district 17 for the fiscal year beginning July 1, 2008, pursuant 18 to section 284.13, subsection 1, paragraph “h” , Code 19 2009 , and the phase II allocation made to each district 20 for the fiscal year beginning July 1, 2008, pursuant 21 to section 294A.9 , Code 2009, and divide that sum by 22 the district’s budget enrollment in the fiscal year 23 beginning July 1, 2009, to determine the teacher salary 24 supplement district cost per pupil. For the budget 25 year beginning July 1, 2010, and succeeding budget 26 years, the teacher salary supplement district cost per 27 pupil for each school district for a budget year is 28 the teacher salary supplement program district cost 29 per pupil for the base year plus the teacher salary 30 supplement state allowable growth supplemental state 31 aid amount for the budget year. 32 Sec. ___. Section 257.10, subsection 10, paragraph 33 a, Code 2013, is amended to read as follows: 34 a. For the budget year beginning July 1, 2009, the 35 department of management shall divide the professional 36 development allocation made to each district for the 37 fiscal year beginning July 1, 2008, pursuant to section 38 284.13, subsection 1, paragraph “d” , Code 2009 , by 39 the district’s budget enrollment in the fiscal year 40 beginning July 1, 2009, to determine the professional 41 development supplement cost per pupil. For the 42 budget year beginning July 1, 2010, and succeeding 43 budget years, the professional development supplement 44 district cost per pupil for each school district for a 45 budget year is the professional development supplement 46 district cost per pupil for the base year plus the 47 professional development supplement state allowable 48 growth supplemental state aid amount for the budget 49 year. 50 -10- HF215.289 (3) 85 md/sc 10/ 18

Sec. ___. Section 257.10, subsection 11, paragraph 1 a, Code 2013, is amended to read as follows: 2 a. For the budget year beginning July 1, 2009, 3 the department of management shall divide the early 4 intervention allocation made to each district for the 5 fiscal year beginning July 1, 2008, pursuant to section 6 256D.4 , Code 2009, by the district’s budget enrollment 7 in the fiscal year beginning July 1, 2009, to determine 8 the early intervention supplement cost per pupil. For 9 the budget year beginning July 1, 2010, and succeeding 10 budget years, the early intervention supplement 11 district cost per pupil for each school district for 12 a budget year is the early intervention supplement 13 district cost per pupil for the base year plus the 14 early development supplement state allowable growth 15 supplemental state aid amount for the budget year. 16 Sec. ___. Section 257.13, subsections 2 and 3, Code 17 2013, are amended to read as follows: 18 2. The board of directors of a school district that 19 wishes to receive an on-time funding budget adjustment 20 shall adopt a resolution to receive the adjustment and 21 notify the school budget review committee annually, 22 but not earlier than November 1, as determined by the 23 department of education. The school budget review 24 committee shall establish a modified allowable growth 25 supplemental state aid in an amount determined pursuant 26 to subsection 1 . 27 3. If the board of directors of a school district 28 determines that a need exists for additional funds 29 exceeding the authorized budget adjustment for on-time 30 funding pursuant to this section , a request for 31 modified allowable growth supplemental state aid based 32 upon increased enrollment may be submitted to the 33 school budget review committee as provided in section 34 257.31 . 35 Sec. ___. Section 257.31, subsection 5, unnumbered 36 paragraph 1, Code 2013, is amended to read as follows: 37 If a district has unusual circumstances, creating 38 an unusual need for additional funds, including 39 but not limited to the circumstances enumerated in 40 paragraphs “a” through “n” , the committee may grant 41 supplemental aid to the district from any funds 42 appropriated to the department of education for 43 the use of the school budget review committee for 44 the purposes of this subsection . The school budget 45 review committee shall review a school district’s 46 unexpended fund balance prior to any decision regarding 47 unusual finance circumstances. Such aid shall be 48 miscellaneous income and shall not be included in 49 district cost. In addition to or as an alternative to 50 -11- HF215.289 (3) 85 md/sc 11/ 18

granting supplemental aid the committee may establish 1 a modified allowable growth supplemental state aid 2 for the district by increasing its allowable growth 3 supplemental state aid . The school budget review 4 committee shall review a school district’s unspent 5 balance prior to any decision to increase modified 6 allowable growth supplemental state aid under this 7 subsection . 8 Sec. ___. Section 257.31, subsection 6, paragraph 9 a, Code 2013, is amended to read as follows: 10 a. The committee shall establish a modified 11 allowable growth supplemental state aid for a district 12 by increasing its allowable growth supplemental 13 state aid when the district submits evidence that it 14 requires additional funding for removal, management, 15 or abatement of environmental hazards due to a state 16 or federal requirement. Environmental hazards 17 shall include but are not limited to the presence of 18 asbestos, radon, or the presence of any other hazardous 19 material dangerous to health and safety. 20 Sec. ___. Section 257.31, subsection 7, paragraph 21 b, Code 2013, is amended to read as follows: 22 b. Other expenditures, including but not limited 23 to expenditures for salaries or recurring costs, are 24 not authorized under this subsection . Expenditures 25 authorized under this subsection shall not be included 26 in allowable growth supplemental state aid or district 27 cost, and the portion of the unexpended fund balance 28 which is authorized to be spent shall be regarded as if 29 it were miscellaneous income. Any part of the amount 30 not actually spent for the authorized purpose shall 31 revert to its former status as part of the unexpended 32 fund balance. 33 Sec. ___. Section 257.31, subsection 14, paragraph 34 b, subparagraph (3), Code 2013, is amended to read as 35 follows: 36 (3) A school district is only eligible to receive 37 supplemental aid payments during the budget year if 38 the school district certifies to the school budget 39 review committee that for the year following the 40 budget year it will notify the school budget review 41 committee to instruct the director of the department of 42 management to increase the district’s allowable growth 43 supplemental state aid and will fund the allowable 44 growth supplemental state aid increase either by using 45 moneys from its unexpended fund balance to reduce the 46 district’s property tax levy or by using cash reserve 47 moneys to equal the amount of the deficit that would 48 have been property taxes and any part of the state aid 49 portion of the deficit not received as supplemental aid 50 -12- HF215.289 (3) 85 md/sc 12/ 18

under this subsection . The director of the department 1 of management shall make the necessary adjustments to 2 the school district’s budget to provide the modified 3 allowable growth supplemental state aid and shall make 4 the supplemental aid payments. 5 Sec. ___. Section 257.32, subsection 1, paragraph 6 a, Code 2013, is amended to read as follows: 7 a. An area education agency budget review procedure 8 is established for the school budget review committee 9 created in section 257.30 . The school budget review 10 committee, in addition to its duties under section 11 257.31 , shall meet and hold hearings each year to 12 review unusual circumstances of area education 13 agencies, either upon the committee’s motion or upon 14 the request of an area education agency. The committee 15 may grant supplemental aid to the area education agency 16 from funds appropriated to the department of education 17 for area education agency budget review purposes, or 18 an amount may be added to the area education agency 19 special education support services allowable growth 20 supplemental state aid for districts in an area or 21 an additional amount may be added to district cost 22 for media services or educational services for all 23 districts in an area for the budget year either on a 24 temporary or permanent basis, or both. 25 Sec. ___. Section 257.37, subsections 1 and 3, Code 26 2013, are amended to read as follows: 27 1. For the budget year beginning July 1, 1991, 28 and succeeding budget years, the total amount funded 29 in each area for media services shall be computed as 30 provided in this subsection . For the budget year 31 beginning July 1, 1991, the total amount funded in 32 each area for media services in the base year shall 33 be divided by the enrollment served in the base year 34 to provide an area media services cost per pupil in 35 the base year, and the department of management shall 36 compute the state media services cost per pupil in the 37 base year which is equal to the average of the area 38 media services costs per pupil in the base year. For 39 the budget year beginning July 1, 1991, and succeeding 40 budget years, the department of management shall 41 compute the allowable growth supplemental state aid 42 for media services in the budget year by multiplying 43 the state media services cost per pupil in the base 44 year times the state percent of growth for the budget 45 year, and the total amount funded in each area for 46 media services cost in the budget year equals the 47 area media services cost per pupil in the base year 48 plus the allowable growth supplemental state aid for 49 media services in the budget year times the enrollment 50 -13- HF215.289 (3) 85 md/sc 13/ 18

served in the budget year. Funds shall be paid to area 1 education agencies as provided in section 257.35 . 2 3. For the budget year beginning July 1, 1991, and 3 succeeding budget years, the total amount funded in 4 each area for educational services shall be computed 5 as provided in this subsection . For the budget year 6 beginning July 1, 1991, the total amount funded in each 7 area for educational services in the base year shall 8 be divided by the enrollment served in the area in 9 the base year to provide an area educational services 10 cost per pupil in the base year, and the department 11 of management shall compute the state educational 12 services cost per pupil in the base year, which is 13 equal to the average of the area educational services 14 costs per pupil in the base year. For the budget 15 year beginning July 1, 1991, and succeeding budget 16 years, the department of management shall compute the 17 allowable growth supplemental state aid for educational 18 services by multiplying the state educational services 19 cost per pupil in the base year times the state percent 20 of growth for the budget year, and the total amount 21 funded in each area for educational services for the 22 budget year equals the area educational services cost 23 per pupil for the base year plus the allowable growth 24 supplemental state aid for educational services in the 25 budget year times the enrollment served in the area in 26 the budget year. Funds shall be paid to area education 27 agencies as provided in section 257.35 . 28 Sec. ___. Section 257.37A, subsection 1, paragraph 29 a, Code 2013, is amended to read as follows: 30 a. For the budget year beginning July 1, 2009, 31 the department of management shall add together the 32 teacher compensation allocation made to each area 33 education agency for the fiscal year beginning July 34 1, 2008, pursuant to section 284.13, subsection 1, 35 paragraph “i” , Code 2009 , and the phase II allocation 36 made to each area education agency for the fiscal year 37 beginning July 1, 2008, pursuant to section 294A.9, 38 Code 2009 , and divide that sum by the special education 39 support services weighted enrollment in the fiscal 40 year beginning July 1, 2009, to determine the area 41 education agency teacher salary supplement cost per 42 pupil. For the budget year beginning July 1, 2010, 43 and succeeding budget years, the area education agency 44 teacher salary supplement district cost per pupil 45 for each area education agency for a budget year is 46 the area education agency teacher salary supplement 47 district cost per pupil for the base year plus the 48 area education agency teacher salary supplement state 49 allowable growth supplemental state aid amount for the 50 -14- HF215.289 (3) 85 md/sc 14/ 18